Learning Objectives

Understand the audit issues related to contingent liabilities.

Know the audit procedures used to identify contingent liabilities.

Understand the audit issues related to a legal letter.

Understand why the auditor must be concerned with commitments.

Know the types of subsequent events.

Understand the effect of subsequent events on the dating of the audit report.

Know the audit procedures used to identify subsequent events.

Know the audit steps included in the auditor's final evidential evaluation process.

Understand how to identify and assess entities with going-concern problems.

Understand the auditor's communication with the audit committee and management and the matters that should be addressed.

Know the auditor's responsibility for subsequent discovery of facts existing at the date of the auditor's report.